MIRA INFORM REPORT

Report Date :

17.04.2008

IDENTIFICATION DETAILS

Name :	SYT LOGISTICS PTE LTD

Registered Office :	^{9 Airline Road} ^#04-05 ^{Cargo Agents Building D}

Country :	Singapore

Financials (as on) :	31.03.2007

Date of Incorporation :	^02.03.2001

Com. Reg. No.:	^200101420C

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Freight and Forwarding Services

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Subject Company

SYT LOGISTICS PTE LTD

Line Of Business

FREIGHT AND FORWARDING SERVICES

Parent Company

N.A.

Financial Elements

FY 2006

COMPANY

Sales : S$3,803,409

Networth : S$ 602,685

Paid-Up Capital : S$ 600,000

Net result : S$ 404

Net Margin(%) : 0.01

Return on Equity(%) : 0.07

Leverage Ratio : 0.81

COMPANY IDENTIFICATION

^{Subject Company : SYT LOGISTICS PTE LTD}

^{Former Name :
-}

^{Business Address : 9 AIRLINE ROAD}

^#04-05

^{CARGO AGENTS BUILDING D}

^{Town :
SINGAPORE}

^{Postcode : 819834}

^{County :
-}

^{Country :
Singapore}

^{Telephone : 6545 9500}

^{Fax :
6545 0059}

^{ROC Number :
200101420C}

^{Reg. Town : -}

SUMMARY

^{Legal Form : Exempt Pte
Ltd}

^{Date Inc. :
02/03/2001}

^{Previous Legal Form : -}

^{Summary year :
31/03/2007}

^{Sales :
3,803,409}

^{Networth : 602,685}

^{Capital :
-}

^{Paid-Up Capital : 600,000}

^{Employees : 6}

^{Net result : 404}

^{Share value : 1}

^{Auditor :
D. ARUMUGAM & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started :
02/03/2001}

PRINCIPAL(S)

^{YAP GUAN TECK S1314008A Director}

DIRECTOR(S)

^{YAP GUAN TECK S1314008A Director}

^{Appointed on : 02/03/2001}

^{Street :31
TAMPINES STREET 34}

^#10-33

^{THE EDEN AT TAMPINES}

^{Town: SINGAPORE}

^{Postcode: 529237}

^{Country: Singapore}

^{CHAN WAN HOI S1578429F Company Secretary}

^{Appointed on :
10/03/2008}

^{Street : 31
TAMPINES STREET 34}

^#10-33

^{THE EDEN AT TAMPINES}

^{Town: SINGAPORE}

^{Postcode: 529237}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{CHIANG HIAP SENG
S1353634A}

^{VEERAPPAN S/O
PALANISAMY S2059547G}

ACTIVITY(IES)

^{FREIGHT FORWARDING Code: 9640}

^{BASED ON ACRA'S RECORD}

^{(1) FRIEGHT TRANSPORT BY
ROAD}

CHARGES

^{Date :
27/06/2006}

^{Comments : CHARGE NO :
C200605833}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) :
UNITED OVERSEAS BANK LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{UNITED OVERSEAS BANK
LIMITED}

SHAREHOLDERS(S)

^{WONG WAI PENG JANET 135,000 Private Person}

^{Street : 470 TAMPINES STREET 44}

^#10-186

^{Town: SINGAPORE}

^{Postcode: 520470}

^{Country: Singapore}

^{TEO LYE SENG
60,000 Private Person}

^{Street : 129 LORONG AH SOO}

^#15-338

^{Town: SINGAPORE}

^{Postcode: 530129}

^{Country: Singapore}

^{YAP GUAN TECK
270,000 Private Person}

^{Street : 31 TAMPINES STREET 34}

^#10-33

^{THE EDEN AT TAMPINES}

^{Town: SINGAPORE}

^{Postcode: 529237}

^{Country: Singapore}

^{CHIANG HIAP SENG
135,000 Private Person}

^{Street : 95 BEDOK NORTH AVENUE 4}

^#07-1403

^{Town: SINGAPORE}

^{Postcode: 1646}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : SLOW}

^{Trend : DOWNWARD}

^{Financial Situation: AVERAGE}

FINANCIAL ELEMENTS

^{All amounts in this report are in: SGD}

^{Audit Qualification:
UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 12/07/2007}

^{Balance Sheet Date: 31/03/2007 31/03/2006}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{---
ASSETS ---}

^{Tangible Fixed
Assets: 5,035 5,351}

^{Total Fixed Assets: 5,035 5,351}

^{Receivables: 737,757 747,640}

^{Cash,Banks,
Securitis: 137,893}

^{Total Current Assets: 737,757 885,533}

^{TOTAL ASSETS: 742,792 890,884}

^{---
LIABILITIES ---}

^{Equity capital: 600,000 100,000}

^{Profit & lost Account: 2,685 2,281}

^{Total Equity: 602,685 102,281}

^{L/T deffered taxes:
1,217}

^{Total L/T Liabilities:
1,217}

^{Trade Creditors: 464,518 380,967}

^{Prepay. & Def.
charges: 11,997 14,050}

^{Provisions: 1,586 673}

^{Other Short term
Liab.: 7,554 391,696}

^{Total short term Liab.: 485,655 787,386}

^{TOTAL LIABILITIES: 485,655 788,603}

^{---
PROFIT & LOSS ACCOUNT ---}

^{Net Sales 3,803,409 3,843,113}

^{NET RESULT BEFORE
TAX: 467 3,246}

^{Tax : 63 643}

^{Net income/loss year: 404 2,573}

^{Depreciation: 10,463 9,134}

^{Directors Emoluments:
65,670}

^{Wages and Salaries: 260,109 327,811}

RATIOS

^{31/03/2007 31/03/2006}

^{Turnover per
employee: 633901.50 640518.83}

^{Net Margin(%): 0.01 0.07}

^{Return on Equity(%): 0.07
2.52}

^{Return on Assets(%): 0.05 0.29}

^{Net Working capital: 252102.00 98147.00}

^{Cash Ratio: 0.00 0.18}

^{Quick Ratio: 1.52 1.12}

^{Current ratio: 1.52 1.12}

^{Receivables Turnover: 69.83 70.03}

^{Leverage Ratio: 0.81 7.71}

^{Net Margin :
(100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss
year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total
fixed assets}

^{Net Working capital : (Total current assets/Total short
term liabilities)/1000}

^{Cash Ratio :
Cash Bank securities/Total short term liabilities}

^{Quick Ratio :
(Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio :
Total current assets/Total short term liabilities}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible
assets)}

FINANCIAL COMMENTS

^NOTE:^{THE FINANICAL STATEMENTS ARE NOT REQUIRED TO
BE AUDITED. THUS,} ^{THE FINANCIAL COMMENTS WILL NOT BE CONDUCTED. PLEASE REFER TO THE} ^{LIMITED EXEMPT PRIVATE COMPANY CLAUSE BELOW FOR FURTHER INFORMATION.} ^{IN REPLACEMENT, ADVERSE CHECK ON ITS LOCAL DIRECTORS ARE MADE.}

^{LIMITED EXEMPT PRIVATE COMPANY:}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT
OWNED BY ANY CORPORATE} ^{BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY} ^{IS KNOWN AS AN EXEMPT PRIVATE COMPANY.}

^{AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER
AMOUNT OF PRIVACY THAN A} ^{PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE} ^{REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS} ^{DIRECTORS,
SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN
EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS
HAVE BEEN TABLED BEFORE THE SHAREHOLDERS}

^{AT THE ANNUAL GENERAL
MEETING.}

^{3. THE COMPANY IS ABLE
TO MEET ITS LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE
PUBLIC OF THE ACCOUNTS} ^{OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED} ^{EVERY YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE} ^COMPANY.

^{A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE
GOVERNMENT MAY} ^{BECOME AN
EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE} ^{NATIONAL
INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE
COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE} ^{STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31
MAY} ^{2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED
$2.5} ^{MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT
OF THE} ^{TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE
STILL}

^{REQUIRED TO MAINTAIN PROPER ACCOUNTING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{02/03/2001 AS A LIMITED EXEMPT PRIVATE
COMPANY AND IS TRADING UNDER} ^{THE PRESENT NAMESTYLE OF "SYT
LOGISTICS PTE LTD".}

^{THE COMPANY HAS AN
ISSUED AND PAID-UP CAPITAL OF} ^{600,000 SHARES, OF A VALUE OF S$600,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED
WITH THE ACCOUNTING AND CORPORATE REGULATORY}

^{AUTHORITY (ACRA) TO BE
PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) FRIEGHT TRANSPORT BY
ROAD}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW,
THE PRINCIPAL ACTIVITIES} ^{OF THE COMPANY ARE TO PROVIDE FREIGHT AND FORWARDING SERVICES.}

^{FROM THE RESEARCH AND TELE-INTERVIEW
CONDUCTED, WITH THE} ^{RELEASE OF THE CLIENT'S NAME, UNITED SHIPPING INC, THE SUBJECT} ^{PERSONNEL CONTACTED WAS VERON (AT AROUND 4.20PM), ACCOUNTING} ^{DEPARTMENT.
SUBJECT CONFIRMED THE ADDRESSES AND CONTACTS AND THE} ^{FOLLOWING
INFORMATION WAS GATHERED:}

^{SUBJECT ENGAGES IN THE
FOLLOWING ACTIVITIES:}

^{* INTERNATIONAL
LOGISTICS, AIR AND SEA SHIPMENTS, 3RD PARTY LOGISTICS}

^{AND ALL OTHER ASPECTS OF
FREIGHT FORWARDING ACTIVITIES}

^{* SEA-AIR, AIR-AIR
SHIPMENTS COMING IN FROM SOUTH EAST ASIA COUNTRIES}

^{GOING TO EUROPE, USA AND
NORTH AMERICA}

^{* COMPLETE SERVICE AND
SOLUTION TO CLIENTS SUCH AS DOMESTIC PICKUPS,}

^{OVERSEAS PICKUPS,
OVERSEAS CUSTOM CLEARANCES, OVERSEAS DELIVERIES}

^{SERVICES PROVIDED:}

^{* AIRFREIGHT}

^{* SEAFREIGHT - OCEAN AND
AIR TRANSPORTATION, PORT TO PORT}

^{TRANSPORTATION, DOOR TO
PORT TRANSPORTATION, DOOR TO}

^{DOOR TRANSPORTATION}

^{* WAREHOUSING, LOGISTICS
AND SUPPLY CHAIN MANAGEMENT.}

^{OTHER SERVICES PROVIDED:}

^{* CUSTOMS CLEARANCE AND
DOCUMENTATION HANDLING}

^{* PICKUPS, DELIVERIES
AND DISTRIBUTION}

^{* MARINE INSURANCE}

^{* CERTIFICATE
APPLICATION}

^{* CROSS STRAITS}

^{* PRE-ADVICE SERVICE
(PLANNING SHIPPING SCHEDULES AND KEEPING SHIPPERS}

^{AND CONSIGNEES OF THE
ARRIVAL AND DISPATCHING OF SHIPMENTS)}

^{HANDLING AGENT FOR
OVERSEAS PARTNERS IN:}

^{* INDIA}

^{* VIETNAM}

^{* MYANMAR}

^{* INDONESIA}

^{* SPAIN}

^{* ITALY}

^{* UK}

^{* GERMANY}

^{* USA}

^{IMPORT COUNTRIES:}

^{* WORLDWIDE}

^{NUMBER OF EMPLOYEES:}

^{* CURRENTLY 6}

^{SUBJECT PERSONNEL
REVEALED THAT THEY ARE INTENDING TO HIRE 1 OR 2 MORE}

^{NEXT MONTH.}

^{NO OTHER TRADE
INFORMATION WAS AVAILABLE}

^{NUMBER OF EMPLOYEES (31
MARCH)}

^{* COMPANY - 2006: NOT
AVAILABLE (2005: NOT AVAILABLE)}

^{REGISTERED ADDRESS:}

^{15 ENGGOR STREET}

^#05-04

^{REALTY CENTRE}

^{SINGAPORE 079716}

^{DATE OF CHANGE OF ADDRESS:
10/11/2005}

^{- HEAD OFFICE}

^{BUSINESS ADDRESS:}

^{9 AIRLINE ROAD}

^#04-05

^{CARGO AGENTS BUILDING D}

^{SINGAPORE 819834}

^{- PROPERTY RECORD WAS
NOT AVAILABLE.}

^{WEBSITE : http://sytst.com/}

^{EMAIL :
sytlog@singnet.com.sg}

^{kenneth@sytst.com}

MANAGEMENT

^{THE DIRECTORS AT THE
TIME OF THE RERPORT ARE:}

^{1) YAP GUAN TECK, A
SINGAPOREAN}

^{- HOLDS OTHER
DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:}

^{SYT SHIPPING &
TRANSPORTATION PTE LTD}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: YAP
GUAN TECK}

^{ADVERSE REPORT AGAINST
DIRECTOR: NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: 1}

^{ANNUAL VALUE: S$15,000}

^{CO-OWNER (S): CHAN WAN
HOI}

^{* ANNUAL VALUE IS THE
ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF}

^{IT WERE RENTED OUT. THE
ANNUAL VALUE IS DETERMINED IN THE SAME MANNER}

^{REGARDLESS OF WHETHER
THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR}

^VACANT.

SINGAPORE’S COUNTRY RATING 2007

^{INVESTMENT GRADE}

^{IN SINGAPORE, THE POLITICAL SITUATION REMAINS
STABLE.}

^{SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA,
WITH AN EFFECTIVE LEGAL SYSTEM} ^{FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL
TRANSPARENCY.}

^{EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY
IN SURPLUS, CONTRIBUTED TO THE} ^{DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO
REPATRIATION OF} ^{PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL
AND TOURISM SECTORS HAVE ALSO} ^{CONTRIBUTED TO THE LARGE CURRENT
ACCOUNT SURPLUS.}

^{SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN
INVESTMENT AND OFFERS A VERY OPEN} ^{AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN
IMPLEMENTING} ^{AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED
PARTICULARLY ON THE CHEMICALS AND} ^{PHARMACEUTICAL SECTORS.}

^{THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT
TO DEVELOP PRIORITY SECTORS} ^{(ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE
THE GROWTH OF} ^{HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A
REGIONAL HUB FOR FOREIGN} ^{INVESTORS INTERESTED IN ASIA.}

^{CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL
SERVICES) ARE HOWEVER ONLY PARTIALLY} ^{OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP,
BUT THE} ^{PROGRESS IS SLOW.} ^{AFTER HIGH GROWTH IN 2006,
BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD} ^{CONSUMPTION, A
SLOWDOWN IS EXPECTED IN 2007.}

^ASSETS

^{" MAJOR EXPORTER OF CAPITAL IN ASIA,
NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING}

^COMPANY.

^{" HIGH QUALITY COMPETITIVENESS IN ASIA}

^{" EXCELLENT BUSINESS CLIMATE}

^{" POLITICAL STABILITY.}

^WEAKNESSES

^{" SKILLED MANPOWER HAS BEEN LACKING IN
THE SECTORS TARGETED FOR DEVELOPMENT.}

^{" AN AGEING POPULATION COULD,
ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.}

^{" GROWING INEQUALITY AND THE EMERGENCE
OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST}

^{SKILLED COULD GENERATE SOCIAL TENSIONS.}

^{" BEING THE WORLD'S MOST OPEN ECONOMY,
IT HAS BEEN VULNERABLE TO WORLD ECONOMIC}

^DOWNTURNS.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 8.9% IN 3Q 2007, FOLLOWING 8.7% GROWTH IN 2Q 2007. GROW MOMENTUM (ON AN ANNUALISED QUARTER-ON-QUARTER BASIS) WAS 4.3%, COMPARED WITH 14.5% IN THE SECOND QUARTER.

THE FINANCIAL SERVICES SECTOR ROSE SIGNIFICANTLY BY 20% IN 3Q 2007, FOLLOWING A 17% GROWTH IN THE PREVIOUS QUARTER. HOWEVER, ON A SEASONALLY-ADJUSTED QUARTER-ON-QUARTER BASIS, THE SECTOR FELL BY 8.6%, IN CONTRAST TO THE 39% GROWTH IN THE SECOND QUARTER. THE DECLINE STEMS FROM THE IMPACT FROM THE TURMOIL IN GLOBAL FINANCIAL MARKETS.

THE CONSTRUCTION SECTOR REGISTERED A STRONG GROWTH. THE SECTOR GREW BY 18%, FOLLOWING 19% GAIN IN 2Q 2007. GROWTH MOMENTUM MODERATED FROM 15% IN 2Q 2007 TO 6% IN 3Q 2007.

MANUFACTURING SECTOR ROSE BY 10% IN 3Q 2007, UP FROM 8.3% IN 2Q 2007. THE HIGHEST GROWTH WAS REGISTERED IN THE BIOMEDICAL MANUFACTURING CLUSTER, FOLLOWED BY TRANSPORT ENGINEERING, ELECTRONICS AND CHEMICALS

CLUSTERS. PRECISION ENGINEERING SECTOR CONTINUED TO SEE LOWER PRODUCTION.

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, SLOWER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES SAW WEAKER GROWTH.

THE TRANSPORT AND STORAGE SECTOR MOEDERATED TO 4.8% IN 3Q 2007, FROM 5.3% IN 2Q 2007. HIGHER GROWTH IN THE AIR TRANSPORT SEGMENT WAS OFFSET BY SLOWER GROWTH IN THE WATER TRANSPORT SEGEMENT AFTER LAST QUARTER’S STRONG GROWTH.

THE HOTELS AND RESTAURANTS SECTOR GREW BY 4.5% FROM 5.3% IN 2Q 2007.

THE AVERAGE OCCUPANCY RATE OF HOTELS CLIMBED TO 89%, A 2.1% RISE OVER 3Q 2006. THE AVERAGE ROOM RATE ALSO GREW BY 22% TO S$204. CONSEQUENTLY, TOTAL HOTEL ROOM REVENUE OF GAZETTED HOTELS ROSE BY 20% IN 3Q 2007 TO AN ESTIMATED S$478 MILLION.

THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 6.9% IN 3Q 2007, HIGHER THAN THE 6.5% IN 2Q 2007. THE TELECOMMUNICATIONS SEGMENT CONTINUED TO ACCOUNT FOR MUCH OF THE GROWTH IN THE SECTOR. IT SERVICES MAINTAINED ITS MODERATE GROWTH LEVEL FROM 2Q 2007.

IN THE TELECOMMUNICATIONS SEGMENT, THE GROWTH OF MOBILE SUBSCRIBERS CONTINUED TO RISE, RISING BY 20%, UP FROM 18% IN 2Q 2007. INTERNATIONAL TELEPHONE CALL DURATION GREW TO 27%, UP FROM 24% IN 2Q 2007.

THE BUSINESS SERVICES SECTOR EXPANDED BY 7.1%, SIMILAR TO THE 7.2% GAIN IN 2Q 2007. GROWTH WAS HEALTHY ACROSS ALL SEGMENTS, WITH GOOD PERFORMANCES IN THE BUSINESS REPRESENTATIVE OFFICES, REAL ESTATE AND PROFESSIONAL SERVICES SEGMENTS.

NEWS

SINGAPORE GROWTH SLOWS TO 6% IN 4Q 2007

THE SINGAPORE ECONOMY GREW AT A SLOWER-THAN-EXPECTED 6% GROWTH IN 4Q 2007, WEIGHED DOWN BY DECLINING MANUFACTURING OUTPUT.

ECONOMISTS HAD ANTICIPATED GROWTH OF 7.0-8.5% FOR 4Q 2007.

THE ESTIMATE FOR REAL GROSS DOMESTIC PRODUCT (GDP) GROWTH, COMPARED WITH 4Q 2006, MEANT THE GROWTH HAD MODERATED FROM THE REVISED GROWTH FIGURE OF 9% SEEN IN 3Q 2006, THE MINISTRY OF TRADE AND INDUSTRY SAID.

ON A QUARTER-ON-QUARTER SEASONALLY ADJUSTED ANNUALISED BASIS, REAL GDP FELL BY 3.2% IN 4Q 2007 COMPARED WITH A 4.4% GAIN IN 3Q 2007, CAUSED BY A SLOWDOWN IN MANFACTURING OUTPUT.

THE FIGURE MARKS THE FIRST QUARTER-ON-QUARTER DECLINE SINCE 1Q 2005, ACCORDING TO DATA.

GROWTH IN THE MANUFACTURING SECTOR IS FORECASTED TO HAVE SLOWED FROM 10.3% IN 3Q 2007 TO 0.5% IN 4Q 2007. IT WAS LARGELY ATTRIBUTED TO A DECLINE IN THE BIOMEDICAL MANUFACTURING CLUSTER AS SOME ACTIVE PHARMACEUTICAL INGREDIENTS WERE NOT PRODUCED.

TRANSPORT ENGINEERING, WHICH INCLUDES OIL RIG MANUFACTURING AND SHIP REPAIR, CONTINUED TO SHOW DOUBLE-DIGIT GROWTH, WHILE THE CONSTRUCTION SECTOR IS PREDICTED TO HAVE GROW STRONGLY BY 24.4% IN 4Q 2007, UP FROM 19.2% IN 3Q 2007.

GROWTH IN THE SERVICE SECTOR WAS STEADY AT 8.3%.

SINGAPORE’S ECONOMY GREW BY 7.5% IN 2007, MARKING THE FOURTH STRAIGHT YEARS OF STRONG GROWTH, PRIME MINISTER LEE HSIEN LOONG SAID IN HIS NEW YEAR MESSAGE.

THE FIGURE FOR 2007 ECONOMIC EXPANSION WAS AT THE LOWER END OF THE GOVERNMENT’S UPGRADED FULL-YEAR GROWTH TARGET OF 7.5-8.0%, AND WAS BELOW THE 7.9% GROWTH REGISTERED FOR 2006.

MR LEE FORECAST GROWTH OF 4.5-6.5% FOR SINGAPORE IN 2008.

OUTLOOK

FOR 2008, EXTERNAL ECONOMIC CONDITIONS ARE EXPECTED TO WEAKEN SLIGHTLY COMPARED TO 2007. THE LINGERING EFFECTS OF THE SUB-PRIME PROBLEMS AND AN OVERALL WEAKENING OF THE HOUSING MARKET WILL DAMPEN US CONSUMPTION. EU GROWTH IS ALSO EXPECTED TO BE LOWER AS A STRONG CURRENCY ERODES EXPORT COMPETITIVENESS. HOWEVER, THE FORECAST FOR ASIAN ECONOMIES REMAIN POSITIVE, WITH CHINA EXPECTED TO SUBSTAIN DOUBLE-DIGIT GROWTH.

WITH THESE FACTORS IN MIND, THE MINISTRY OF TRADE AND INDUSTRY PREDICTS THS SINGAPORE ECONOMY TO GROW BY 4.5-6.5% IN 2008. THIS REPRESENTS A MODERATION IN GROWTH TOWARDS THE ECONOMY’S POTENTIAL RATE OF GROWTH, AFTER FOUR YEARS OF ABOVE-TREND GROWTH.

THERE ARE SOME DOWNSIDE RISKS. IF THE SUB-PRIME PROBLEMS WORSEN THAN EXPECTED, OR OIL PRICES RISE FURTHER IN 2008, THIS COULD BRING A GREATER-THAN-EXPECTED SLOWDOWN IN US, WHICH WOULD AFFECT THE SINGAPORE ECONOMY.

IN THE FINANCIAL SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS, ESPECIALLY INSURANCE COMPANIES, REMAINS POSITIVE ABOUT THE BUSINESS OUTLOOK IN THE MONTHS AHEAD.

FIRMS IN THE REAL ESTATE INDUSTRY EXPECT BUSINESS TO BE BRISK FOR THE

COMING MONTHS, IN PARTICULAR THE REAL ESTATE DEVELOPERS.

MANUFACTURING FIRMS REMAIN OPTIMISTIC FOR THE PERIOD ENDING MARCH 2008. A NET WEIGHTED BALANCE OF 25% OF MANUFACTURERS FORECAST BETTER BUSINESS, SLIGHTLY HIGHER THAN THE 22% REGISTERED BOTH IN THE PREVIOUS QUARTER AND THE SAME PERIOD IN THE PREVIOUS YEAR.

WHOLESALERS GENERALLY REMAIN POSITIVE ABOUT THEIR BUSINESS CONDITIONS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS BEING OPTIMISTIC FOR THE COMING MONTHS. SEGMENTS THAT ARE EXPECTED TO PERFORM BETTER INCLUDE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD ELECTRICAL APPLIANCES.

RETAILERS ANTICIPATES BETTER BUSINESS IN THE COMING MONTHS DUE TO YEAR-END FESTIVE SHOPPING, WITH A NET WEIGHTED BALANCE OF 31% BEING POSITIVE. THE SEGMENTS THAT ARE FORECASTING BRISK BUSINESS IN THE COMING MONTHS INCLUDE DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS.

HOTELIERS FORESEES A FAVOURABLE BUSINESS OUTLOOK, WITH A NET WEIGHTED BALANCE OF 79% OF FIRMS EXPECTING THEIR BUSINESSES TO RISE IN ANTICIPATION OF HIGHER BANQUET SALES AND INCREASE IN ROOM REVENUE IN VIEW OF THE POSITIVE DEVELOPMENT IN THE TOURISM INDUSTRY. FIRMS IN THE CATERING TRADE INDUSTRY ALSO FORESEES BETTER BUSINESS CONDITIONS.

FIRMS IN THE INFORMATION AND COMMUNICATIONS INDUSTRY PREDICTS A HIGHER DEMAND FOR THEIR SERVICES, WITH A NET WEIGHTED BALANCE OF 5%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 33% OF FIRMS EXPECTS POSITIVE SENTIMENTS. THESE INCLUDE ACCOUNTING, BOOK-KEEPING AND AUDITING, ENGINEERING AND SPECIALISED DESIGN SERVICES AS WELL AS TRAVEL AGENCIES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNEL NEWS ASIA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions